Amazon Announces 14 Thousand Management Positions Cut by 2025

Amazon announced a restructuring plan that will eliminate approximately 14 thousand managerial positions by the beginning of 2025. The measure aims to save between US$ 2.1 billion and US$ 3.6 billion annually, representing a reduction of 13% in the company's global managerial workforce, which will go from 105,770 to 91,936 managers.

This decision follows recent layoffs in Amazon's communications and sustainability departments as the company seeks to streamline its operations and restructure teams.

According to Business Insider, job cutting is part of CEO Andy Jassy's strategy to simplify decision-making and speed up internal procedures.Last month, Jassy announced plans to increase the ratio of individual employees to managers by at least 15% by the end of the first quarter of 2025. He emphasized that reducing management layers will make operations more efficient and allow Amazon to make decisions faster, avoiding excessive bureaucracy.

Morgan Stanley projected that Amazon's plan could eliminate about 13,834 managerial positions by early next year.The estimate is based on the premise that managers represent 7% of the company's total workforce.

“O Morgan Stanley estimated that this effort could lead to the elimination of approximately 13,834 management positions by early next year, resulting in cost savings of US$ 2.1 billion to US$ 3.6 billion”, Business Insider reported.

As part of this plan, Amazon launched a” red tape reporting “channel, encouraging employees to point out inefficient procedures that slow down work.Managers were also instructed to increase the number of direct reports, limit high-ranking hires, and review salary structures to support the transition to a leaner management model.

This wave of layoffs continues Amazon's cost-cutting efforts, which had already cut more than 27k jobs in 2022 and 2023. The company also backed down from non-profit projects, including its “Experimente Before Buying” initiative for clothing and a fast delivery service in brick-and-mortar stores.

Amazon's workforce grew significantly during the pandemic, reaching more than 1.6 million at the end of 2021, a significant increase from 798 thousand employees at the end of 2019.

Earlier this year, Amazon ordered corporate employees to return to the office five days a week, with some asked to relocate to designated office centers, prompting some professionals to opt out of the company rather than move.

With Techstartups.com information